YES Bank rejects Canada’s Erwin Singh Braich’s moneybags; to raise Rs 10,000 crore on its own

 The private sector bank also informed the board that it is willing to favourably consider the offer of 0 million from Citax Holdings and Citax Investment Group.

YES Bank on Friday said that it has rejected the Canadian investor Erwin Singh Braich investment offer, which accounts for 60 per cent of its planned $2 billion capital raising. The private sector bank also informed the board that it is willing to favourably consider the offer of $500 million from Citax Holdings and Citax Investment Group in the next round of discussion.The SPGP Holdings and Canada’s Erwin Singh Braich had recently made an investment offer of $1.2 billion to the debt-struck YES Bank. The board of directors of the bank has approved “raising  of funds upto Rs. 10,000 Crore, in one or more h·anches, on such terms and conditions as it may deem fit, by way of issuance of securities including but not limited through Qualified Institutions Placement (QIP)/ Global Depository Receipts (GDRs)/ American Depository Receipts (ADRs)/ Foreign Currency Convertible Bonds (FCCBs)/ or any other methods on private placement basis.”

On November 30, 2019, YES Bank had disclosed the list including US-based Capital International, GMR Group and Associates, billionaire investor Rakesh Jhunjhunwala’s wife Rekha Jhunjhunwala and Aditya Birla Family Office. Shares of Yes Bank on Friday tumbled over 5 per cent after the company’s Independent Director Uttam Prakash Agarwal resigned citing “serious concerns” on “deteriorating practices” and the state of affairs at the private sector lender. The scrip plunged 5.29 per cent to close at Rs 44.80 on the BSE. During the day, it dropped 7.18 per cent to Rs 43.90. On the National Stock Exchange (NSE), it dived 4.96 per cent to close at Rs 44.95.

The stock was the worst hit among the Nifty-50 components. In terms of traded volume, 159.19 lakh shares of the company were traded on the BSE and over 30 crore shares on the NSE during the day. “I hereby tender my resignation from the office of the independent director of Yes Bank as also chairman of audit committee and member of all other committees of the board with immediate effect,” he said in his resignation letter addressed to Non-Executive Part-Time Chairman Brahm Dutt.